State companies not for public offering: Tanri
State companies not for public offering: Tanri
JAKARTA (JP): State Minister of the Empowerment of State
Enterprises Tanri Abeng said yesterday that none of the 12 state
firms to be privatized this fiscal year would be sold directly to
the public.
Speaking at a discussion with the staff of the Attorney
General's Office, the minister said the government would instead
invite strategic partners to buy the companies' shares through
direct placement.
"Selling the shares through IPO (initial public offering) when
the capital market is sluggish will not benefit us. We would not
get an appropriate return for our assets," Tanri said.
Tanri said selling the state companies' to strategic partners
would be much more profitable not only because they were willing
to pay handsomely but also because they have long-term investment
plans.
The government plans to privatize 12 of the 159 companies
under the control of Tanri's office in the 1998/1999 fiscal year,
and hopes to raise Rp 15 trillion to support the strained state
budget from the sales.
It announced early this year that it would divest its holdings
in five listed firms and sell a portion of its shares in another
seven unlisted state companies.
At present six of the 12 firms are listed on local stock
exchanges: telecommunications company's Telkom and Indosat, tin
miner Tambang Timah, gold and nickel miner Aneka Tambang, cement
producer Semen Gresik and Bank Negara Indonesia.
The remaining six firms which will be listed on the stock
market are steelmaker PT Krakatau Steel; port infrastructure firm
and operator PT Pelindo II and PT Pelindo III; toll road operator
PT Jasa Marga, oil palm plantation company PT Perkebunan
Nusantara IV, coal miner PT Tambang Batubara Bukit Asam, and
airport management firm PT Angkasa Pura II.
At yesterday's forum, Tanri reiterated the urgency of
restoring a stable political and social environment in the
country.
"It is hard for us to attract investors if we do not follow
the approved rules of the game and legal process to restore their
confidence," he said.
He said the mushrooming of social unrest, such as the looting
of plantations, and weak legal system would not attract
investors.
Tanri, who is also chairman of the State Enterprises
Management Agency, said his office would implement a new
management system to restore other ailing state companies
currently under his restructuring program.
He said state firms would undergo two programs: operational
improvements and restructuring.
The firms' key executives would lead the operational program,
focusing on improving the company's efficiency and renegotiate
existing contracts which are burdening companies.
The restructuring program would be led by an interdepartmental
team which would include officials from the firms' technical
ministry and the National Development Planning Board. (das)